Like a vehicle being repossessed after missed payments, the foreclosure process is the legal path a lender uses to take and sell real property when the borrower defaults on the mortgage. It usually begins after repeated missed payments and formal notices, then moves through either a court case (judicial foreclosure) or a non-court procedure allowed by state law (nonjudicial foreclosure). If the lender completes the process, the home is sold at auction or taken back by the lender, and the borrower can lose ownership and possession.

Practically, the timeline matters. Federal mortgage servicing rules under Regulation X, 12 C.F.R. § 1024.41, generally bar a mortgage servicer from making the first foreclosure notice or filing until a loan is more than 120 days delinquent, with limited exceptions. During that period, a borrower may seek loan modification, forbearance, or other loss mitigation options. Complaints about mortgage servicers can be made to the Consumer Financial Protection Bureau.

The process can also affect an injury claim. If someone is hurt on property that is in foreclosure, the key question is often who owned, possessed, or controlled the premises when the injury happened. That can affect a premises liability claim, insurance coverage, and where legal notices should be sent. A foreclosure sale may also complicate recovery if there are liens, a deficiency judgment, or bankruptcy issues.